HERMÈS - 2020 Universal registration document

CORPORATE SOCIAL RESPONSIBILITY COMMUNITIES: STAKEHOLDERS AND LOCAL INTEGRATION

compliance with the deadlines specified by applicable regulations • in each country for filing the required tax statements and the payment of taxes owed, income is taxable in the place where the income is generated, • absence of creation of legal structure or transactions to meet a • primarily tax-related objective, the fight against tax evasion with the absence of use of tax • evasion schemes or structures without substance. This tax strategy is implemented by Group Financial General Management, based on internal (the tax department) and external expertise in France and abroad. This strategy is reviewed and approved by the Executive Committee at least once per year: the location of the Hermès Group’s activities is based exclusively on s operational choices, and tax considerations do not modify that approach. That is how the location of production in France, which is a key element of the Hermès Group’s strategy for sustainable development, impacts the amounts of taxes paid in the country as well as the Group’s effective tax rate. The effective tax rate was thus 31%, compared to France’s current tax rate of 32%; the Hermès Group’s tax positions are tracked and audited by the tax s department, which reports directly to a member of the Executive Committee, one of whose objectives is to anticipate, identify, and manage, with the finance department, the tax challenges. It contributes to the identification of any non-compliant or unethical practices, in addition to the H-Alert! internal system open to all employees; every year the Group files, as part of its tax obligations, a statement s of transfer prices and a country-by-country statement, the Cross-Border Currency Reporting (CBCR) with the French tax administration. The CBCR is created in accordance with the recommendations of the OECD (as interpreted in French tax law). It is subject to an exchange of information between the tax administrations of the countries in which the Group is established. In the countries in which the exchange of information is not operational, the Group has a CBCR programme with the local tax administration.

The employees of the sites in France have used their savoir-faire and expertise to produce and manufacture: nearly 50,000 litres of hydroalcoholic solution were produced • by the CNP ( Comptoir Nouveau de la Parfumerie ) . They were donated in particular to French hospitals, but also to numerous local entities such as the Agglomération Seine-Eure and the Prefecture of the Grand-Est region, as well as partner associations providing assistance to disadvantaged people, 110,000 fabric masks were made by craftspeople at the • Leather Goods workshops. They were made for the benefit of various French hospitals, such as the Hospice Civil de Lyon. More than 7,000 hours were spent manufacturing these articles, including cutting and stitching. In the same spirit of mutual aid and solidarity, the House donated various protective equipment in support of the pandemic: 122,000 surgical masks were distributed to several s associations, in France and abroad. For example, the Benji’s Center in Hong Kong received 20,000 masks, and the Federico Gomez children’s hospital in Mexico received 8,800. In France, regional authorities such as the Angoulême Regional Health Agency and Paris hospitals have also benefited from such donations; nearly 25,000 FFP1 and FFP2 masks were sent to numerous s French hospitals, such as the Bichat Hospital in Paris; additional equipment, including 3,200 gowns, was sent to s certain hospitals in France, such as the Clermont-Ferrand University Hospital Center and the Avicenne Hospital in Bobigny. A retirement home and firefighters and police officers in Portugal benefited from 5,500 gloves; the Leather Goods workshops of the Alpes, Ardennes and s Sud-Ouest as well as the manufacture de Pierre-Bénite, donated 46,000 meters of fabric to several French hospitals, including the Charleville-Mézières Hospital Center and the Hospices Civils in Lyon, for the purpose of making their own “general public” masks; the subsidiaries also donated their time to help those most s vulnerable to the virus. For example, six employees of Hermès Suisse helped the association “Carrefour rue” sort clothes during the first lockdown, in order to assist the homeless. The Brazil subsidiary organised a campaign to buy masks. For each purchase of a fabric mask by an employee, Hermès Brazil bought a complementary one to donate to local communities.

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2.7.2.1.2 Tangible and generous commitments: financial donations, contributions in-kind and volunteering actions

COVID-19 – GENERAL MOBILISATION TO SUPPORT STAKEHOLDERS

Faced with the global health crisis, all Group entities and employees around the world have joined in to help and support local stakeholders affected by the pandemic. The actions took various forms: the Hermès Group made an exceptional donation of s €20 million for equipment at the AP-HP hospitals in Seine-Saint-Denis , the financing of the professional training of caregivers and the reinforcement of the capacities to innovate. this donation is the largest this institution has ever received.

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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